Mumbai, July 1 -- Japan G sec yields fell today, testing near three-week low. Demand at Japan's sale of 10-year government notes was relatively strong ahead of a key auction of 30-year bonds later this week. The bid-to-cover ratio was at 3.51, higher than the 12-month average of 3.14, as expectations for rate hikes by the central bank receded and upward pressure on longer-maturity yields eased. Ten-year bonds yields fell under 1.40% mark to test 1.38% as a drop from two-month high of 1.56% in last week of May extended. Generally lax US yields also weighed on the sentiments.

Published by HT Digital Content Services with permission from Capital Market....